<i>The expansionary fiscal policy of the American government alongside the Federal Reserve's tighter monetary policy should theoretically be appreciating the dollar – yet the currency remains weak. Joachim Fels from the investment company PIMCO attempts to offer an explanation. </i>
Why has the dollar been so [Read more]
Paradoxically, the rise in trade deficits incurred by a number of states and multinational companies has increased demand for the dollar.
In the world of foreign trade, there is a typical reflex response: a strong dollar is good. If the dollar increases in value, it's Christmas in export economies like Japan, China, and Germany. In fact, one can argue that the more expensive the imports of raw materials become on a U.S. dollar basis, the more the [Read more]